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Factors that Affect the Selling Price of Your Property

While home owners anticipate high return for their property, estimating the value can be a complex and comprehensive process. There are many factors that can affect the market value of your property. Knowing what factors influence the sale price can go a long way in estimating what the final sale price will be. Below are some factors that can influence what the sale price of your property will be.

The local real estate market

There are customarily three different real estate markets: a seller’s market, when there are lots of potential property buyers and not enough property; a buyer’s market, when there are many properties for sale but not many potential buyers. The third real estate market is a balanced market, when there is an even supply of properties for sale as the number of potential buyers looking to purchase. As with any other commodity, supply and demand influences price.

The location or neighborhood

Residential property located on a busy road generally will have a lower sale price than a home that is on a more quiet area, which is more desirable. There are certain things potential buyers look for in a neighborhood or community while deciding which one to live in. These mainly include: distance from schools, churches, clinics, public transportation, the city, etc.

The condition of the property

Potential buyers will take into account the condition of your property when deciding how much they are willing to pay for it. A home in immaculate condition has a much higher potential for a great sale than one that is lacking the most basic routine maintenance. Buyers tend to look for important conditions like paints, floor covering, walls, ceilings, doors and windows. They may also pay close attention to the plumbing, electrical work, needed repairs, bathrooms, kitchen, and so on.

Upgrades, features, and amenities

There are certain upgrades, amenities, and features that home buyers are looking for which can have an impact on the sale price of a home. High end homes have a higher sale price because of the desirability from the eyes of the buyer. A home or parcels of land that may have similar square footage and location with added features generally have higher sales prices.

 

Expertise and experience of the real estate professional

Being able to sell a home is not the same as knowing how to sell a home. Hiring an excellent real estate agent or agency will impact the sale price of your property positively. If you are selling, a few things you should expect from the real estate agent include:

  • A comprehensive marketing plan with strong negotiating skills
  • Frequent communication, trustworthiness and honesty
  • Strong online presence with a website, blog and social media
  • Strong negotiating skills
  • Creativity

Motivation

The motivation level that a homeowner has can greatly impact the sale price. A home that sits on the market because the seller is not motivated, in many cases, will end up getting sold at a lower price than if they were eager to sell from the beginning. If you are selling a home and have doubts as to whether you should sell or not, do not list your home.

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Buying a home for the first time? Do not make these common mistakes!

When purchasing a property, you don’t want to make the wrong move or completely overlook something important. The best thing you can do is educate yourself and be aware of common mistakes buyers make – so you can avoid them and the stress they cause.

  1. Miscalculating the Full Costs of Buying

Buying a house will likely be the biggest financial endeavor of your life thus far. Even with all of the low down payment programs available to first-time buyers, it’s no small feat. Down payment aside, other expenses can really add up. Along the way, there will be a few sunk costs, like paying your home inspector and the appraisal fee. The biggest “hidden cost” that comes as a surprise to first-time home buyers is the closing costs, which cover a wide variety of transactional fees and pre-payments.

Down payment aside, other expenses can really add up. Along the way, there will be a few sunk costs, like paying your home inspector and the appraisal fee.

Closing costs can amount to 2 to 5 percent of the home’s purchase price. The best way to determine a comprehensive list of fees is to speak with all of the key players involved in the transaction (your real estate agent, the lender, the insurance provider, the title company, your attorney, etc.) to get an estimate.

  1. Only Fixating on the House

The house is obviously a very important part of the home-buying equation. But, I would argue that its surroundings are equally important. As a buyer, you are investing in the community and particularly the neighborhood. If you’re relocating to a new area, it’s especially critical to analyze things like crime rate, school systems, amenities and public transportation options. With a little effort, you can scout neighborhoods like a pro.

  1. Being Close-Minded About Inventory

You know the expression, “Don’t judge a book by its cover.” Well, the same thing could be said for buying real estate. Sometimes we are put-off by a listing online, especially if the marketing efforts are lacking. Before ruling out a property based on poor-quality photography, run through its other attributes.

The same can be said about neighborhoods and housing types that are outside of your current knowledge base. As a buyer, the best thing you can do is to keep an open mind and fully explore your options.

  1. Letting Emotions Override Your Wallet

Buying a home can be emotional. It can be hard to think logically when a seller has pulled out all of the stops to make you fall in love with his or her home. Trust me, an immaculate and beautifully staged property in your ideal neighborhood may be difficult to pass up. It’s fine to let a home pull at your heartstrings, and to let the emotions help to guide your decision. However, if the financials are a critical driver of your purchase, you’ll want to balance emotions with logic.

I always recommend creating a comparative market analysis to help you determine a home’s fair market value and justify your purchase price.

  1. Getting Distracted by “The Small Stuff”

If you’re new to homeownership, it’s difficult to imagine the responsibility that goes into maintaining a property. Heating/cooling systems, roofs, siding and windows are all fundamental components of a home. Home shoppers love to look at the surface items like finishes and paint colors, but you don’t want to become so distracted that you completely ignore what’s under the hood.

Try to compile a list of the big-ticket infrastructure items and how much life is left in each. Request a disclosure form from the seller and press for answers during your home inspection so that you can budget for repairs.

  1. Blaming Other People When Things Go Wrong

Investing in real estate always holds some level of risk. It’s only wise to make well-researched choices and to hire experts throughout a transaction. Sadly, even with all the good intentions, sometimes things go south. What’s worse is when you feel like you’re stuck holding the bag. Say, you bought a house and quickly find out the finished basement has a water seepage problem. While it would have been nice for the home inspector to catch the issue, it may not have come up in a visual assessment.

 

Be your own advocate. Ask the hard questions and think about things from a holistic viewpoint. Also, protect yourself. It’s always best to have a reserve fund to cover the unexpected (when and if they should arise).

 

Lastly, don’t make the mistake of thinking this is an exhaustive list! Every deal is different, but by avoiding these common mistakes you’ll be putting yourself in a stronger buying position.

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What is a typical construction timeline?

Every construction job is different, and from our previous article we discussed the different variables that can affect the construction timeline. However, there are some steps in the process that are standard when it comes to building a home. A construction timeline tailored to the house you are building should be provided before the project begins. If one is not provided there is nothing wrong with asking for one.

According to Home Building Smart, here’s what the average construction timeline might look like:

Pre-construction period

Before you begin, the construction plans and cost estimates should be finalized and your finances (loans, etc.) should be sorted out. This can take one to two months maybe even longer.

Preparing the lot and laying the foundation

This includes clearing out trees, leveling the lot, construction of the foundation and starting the flooring. A month is about the average timeline for this step.

Framing the house and building the roof

Framing usually takes about two months, but can be delayed by the weather. Once the roof is completed: framing and covering, weather is generally less of a hindrance as it allows for different activities to be undertaken within the structure during rain.

Siding and services: electrical and plumbing

Workers will erect internal and external walls of the house, which takes about a month. With the walls in place, rough plumbing and electrical wiring works, heating, ventilation, and air conditioning (if included) can be done but the installation of services will be ongoing.

Surface finishing

This is when the inside of your house starts to look like a house, with the work completed. Expect about two months.

Fixture installation and finishing works

In the final two months painting is done in addition to finishing the plumbing and electrical work and hanging of ceiling fans, if any.

Punch list

This is a critical step where you do a final walk through and you and your contractor create a to-do list of little things that still need finishing up to ensure that the work meets your expectations. Make sure you go into this with a critical eye and question anything that seems inconsistent with these expectations.  This is your chance to get your contractor to fix mistakes before you move in.

 

Some of these steps can overlap, of course, and as previously stated delays along the way can make the job take longer than anticipated.

 

Have you experienced the home building process? What timeline did it take? Share with us in the comments below.

 

If you need any clarification on this topic, feel free to email us at info@millenia.dm.

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Variables That Can Affect Your Construction Timeline

Anyone looking to buy a home knows that it is all about compromise. You may find a good home, but the kitchen is smaller than you want. Or the price is within your budget, but the layout is nowhere close to what you are looking for. If you have searched tirelessly and simply cannot find the right home, you may need to have the perfect home constructed. One of the most common questions we get asked is, how long will constructing a home take?

 

While experts believe that it takes somewhere between 5 months and a year to build a residential building from scratch, there are a lot of variables to consider which can affect the construction timeline, the biggest of which are:-

  • The number of efficient workers on the job each day – the timeline in which your home is completed heavily depends on the amount of individuals working on the construction site. For instance, if you have a large crew more work can be accomplished in a shorter period of time compared to having a small group of construction workers.

 

  • Type of materials – the materials you choose can also impact your construction timeline. Based on the home you want built, whether it be made of concrete, brick, wood, or a combination of the above mentioned, the time taken to complete will vary. Also whether you desire a concreted roof, galvanized roof, or a tiled roof can affect the timeline.

 

  • Arrival of materials – one holdup that can be out of your contractor’s hands is the arrival/availability of materials. It is beyond the control of anyone except the company providing the construction materials as to when they will be available. Not having the necessary items when needed can cause your construction project to get off track.

 

  • The state, location and accessibility of the lot – in instances where there may be an existing building in need of being demolished or the ground where you want to build is in bad shape or steep more time will be added to the duration of the construction project. If the land is located in an area with poor access, transportation of materials can be difficult and result in work being slower.

 

 

 

  • The weather – weather is probably one of the most common factors that can delay construction, especially at the beginning of the job, before the roof is complete. Constant rainfall as well as many other acts of nature can delay your progress. Once you have the walls and roof finished, bad weather isn’t as much of a concern.

What is most important is that you find a contractor or construction firm who you can trust and who communicates with you every step of the way. You need to trust that you are being given a reasonable time estimate. If something feels like it is taking too long, ask your contractor about it. There could be a good reason, but you will not know unless you ask.

Have you experienced the home building process? Are you a contractor yourself? What are your thoughts on the variables shared? Did you experience another factor that affected the timeline of your construction project? Share with us in the comments below.

If you need any clarification on this topic, feel free to email us at info@millenia.dm.

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4 Mistakes to Avoid When Shopping for a New Home

A home is likely the most costly asset you will ever own, and it’s not a decision to be taken lightly. The dream of homeownership can quickly turn into a nightmare, leaving you with a lifetime of financial regrets.

 

Don’t let the home-buying process make a financial fool out of you. Here are four of the biggest home shopping mistakes to avoid:

 

  1. Treating a home solely as an income generating investment

A house should first and foremost be for living in. Rental income is never a sure thing, so the home should be able to serve you if you fall short of the returns you expected. Buying a home in order to use it as rental or guesthouse is not always financially wise, and often yields undesirable results.

 

  1. Comparing your rent to a mortgage payment

Just because you pay a certain amount in rent does not mean you can afford the same amount as a mortgage payment. There are multiple costs associated with purchasing and owning a home that should be taken into consideration.

 

  1. Maxing out your loan

Life can be unpredictable, and it is easy to find yourself suddenly living in a house you can no longer afford. Skip the large mortgage payment and decide on security instead. You can’t put a price on knowing you can stay in your home even if you face a financial crisis or life change.

 

  1. Taking too long to make a decision

Don’t let cosmetic issues like paint colors or outdated décor keep you from putting an offer in on a home. You can take your time later to upgrade the physical imperfections. If a house is priced well, structurally sound, in your desired location, is the right size and has a great layout make an offer.

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Use the Sun to Naturally Make Your Home Brighter

Natural lighting conserves electricity, creates a connection with the outdoors, and gives a space a lively feeling. We should attempt to have light come into a building from as many directions as possible. The quality of the light and connection to the outside is what people feel the most, even more than the size of a space. Here are some of the techniques architects use to bring light in and control it for the best effect.

 

Tracking the sun’s path

If you like to wake up to the sun, you can build the bedrooms on the east side of the house. If you prefer maximum light in the living/dining quarters later in the day, you can choose to put them on the west side.

 

Funneling light into the center of a home

One common technique many architects use is to create a central stairwell, for multiple storey buildings that doubles as a light well, lit by a nearby window or skylight. This makes the stairs light and open.

 

Windows

Adding more windows to your home or building allows for the maximum capitalization of sunlight. The more windows there are, the more light enters and fill the entire room.

 

Replace Interior Solid Doors with Glass

Living, dining, laundry rooms with solid interior doors can be replaced with glass doors which not only allows light to easily pass through but also reflects light back into the room.

 

Paint Your Rooms Deep Colours

The most common thing to do with dark rooms is to paint them light to increase brightness, but sometimes the best thing to do is to embrace the shadows and go for deeper, moody colors.

 

Hang a Well-Placed Mirror

Another tool for reflecting light is with the use of mirrors. The addition of mirrors in living rooms allows captured light to be reflected in the opposite direction.

 

Trimming Trees and Other Plants

Trees are beneficial to the home in that it blocks the sun from directly heating the home. However they reduce the amount of light entering the room. By effectively trimming the leaves and branches they can achieve both functions.

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Tips on Making Your Home Energy Efficient

With the effects of climate change and global warming around us increasing, it is important to be environmentally friendly and aware of the impact our domestic activities have on the environment. It is also highly beneficial when you consider how much money can be saved by building or making your home energy efficient. In order to have a productive energy efficient home, you need to be able to cut costs when required. This means using less electricity and trying to eliminate the products that have a negative impact on the environment, which eliminates the stress that comes with paying high monthly bills. Here are few ways you can convert your home into one that is more energy efficient:

 

Smaller is Better:  A small home built with eco-friendly techniques has less environmental impacts compared to a larger home.  A house that is too large is likely to cost more to heat and cool. Try to keep your home manageable and cost effective.

Energy Efficient Equipment:  ENERGY STAR label on a piece of equipment states that particular product has been deemed as energy efficient by the Environmental Protection Agency (EPA). Switching to these appliances offer significant cost and energy savings without compromising performance.

Use Sustainable Building Materials:  Use environmentally or eco-friendly products to reduce the impact of construction on the environment. Each and every part of your house such as roofing material, building material, cabinets, and counters to your flooring can be environmentally friendly. Use products such as recycled glass or natural products such as bamboo which are made of natural, renewable materials.

Install Solar Panels:  Solar energy is a clean and renewable source of energy. Solar panels may be expensive at first, but the long-term savings you can put into your pocket is worth the upfront costs. By taking advantage of solar power you can bring down your energy consumption and supply more energy.

Water Conserving Fixtures:  Low flow faucets, toilets, showerheads are few of the ways that you can use while building a green home to conserve water. They can cut down on your water bill cost and make your home much more environment friendly.

Rainwater Harvesting Systems: Install a rain-water harvesting system while building your energy efficient home to collect rainwater from roofs and then storing it in a tank. The collected water can then be used for other purposes such as flushing toilets.

Tank-less Water Heaters:  Tank-less water heaters heat only the amount of water needed as it is passed through electric coil. This provides two benefits. Firstly, it eliminates excess energy costs as it heats up only that much amount of water that is needed and secondly, you can get ample storage space by eliminating the hot water tank.

Eco-Friendly Lighting:  Both LED and CFL cost more upfront but use less energy and last longer than traditional incandescent bulbs. Since they offer significant cost savings in the long run, they can be ideal for your energy efficient home.

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The Importance of Hiring an Architect

Designing and building a home, office or investment property can be particularly complicated.  Each task entails exceptional skills and disciplines in order to get the job done perfectly.  If you are planning a home extension, conversion or are building a new property, it is more than likely that you will need the assistance of an architect.

 

  • An architect works with you on an intensive examination of your requirements, to help you accomplish your vision. He will help you characterize and create what you want to build, as well as present options you may never have considered.

 

  • An architect will help you set a practical and rational budget, and help guide you through the planning process. They design in accordance with set standards and provide assistance in obtain permission from the necessary authority, in Dominica, Physical Planning Division.

 

  • They are knowledgeable about building materials and practices and are also familiar with new building technologies and materials, and their application, to create efficient buildings that are airy, comfortable and stylish.

 

  • An architect knows how to plan rationally for best environmental performance, they can give advice about placing the building on the site to enhance views and features, to catch the sun, provide shade, promote natural cross-flow ventilation, reduce and conserve energy.

 

  • Architects produce outstanding solutions to often complex residential and commercial needs. Creative thinking, attention to detail and functional performance underpin everything an architect does.

 

  • An architect manages the construction phase and all the work if necessary. They manage consultants like surveyors. Critically, your architect will inspect the work right through the construction period to facilitate you in getting the quality and level of finishes you deserve.
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Consider These When Buying a Home

Real estate purchases most times involve borrowing a large sum of money (mortgage) usually above $100,000 and therefore calls for making informed decisions.  These decisions you don’t have to make on your own.  If you are considering a mortgage we advise you to consider these three points below to assist you in making the best decision.

 

Take note of your finances:

Figure out what you can spend. Taking a simple inventory of your wallet can help you understand your financial ability and speed up the process. Know your financial limits to prevent potential pitfalls.  For example, if you bring home $3,500.00 per month and have outstanding loans and bills with payments totaling $1,800.00 and the bank requires a monthly payment of $1,400.00 for the mortgage then it’s likely you may eventually default on one of your loans or bills with just $300.00 cash left in hand.

 

Find a real estate agent:

The search for a home could be very tedious because of limited time and market information.  Use a professional in the real estate field as they will have the time to search for a suitable property and will be aware of available properties for sale in their territory.  They will come with added benefits such as access to properties, understanding of prices, taxes and the buying process etc.

 

Have a home inspection:

Have an inspection even if the property appears to be in good condition or is relatively new.  In the event that the selling price does not reflect the property flaws, a home inspection may give you a chance to negotiate your offer or withdraw your offer preventing you from making a costly mistake of purchasing a home that needs major repairs you didn’t budget for.

 

 

Don’t do it alone, purchasing real estate is a major financial investment.   Assembling a team of knowledgeable professionals such as a financial advisors, lawyers, property inspectors and realtors can provide much needed advice.

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5 Common Rationales for Designing and Building Your Own Home

The decision of whether to buy a home or to build a home is one faced by many individuals.  Being involved in the real estate component of our businesses, we come across many people looking to buy a home, most with the justification that it will be much more convenient to buy the house and move in immediately, avoiding the construction process and period.  On the other hand, we have the privilege of witnessing our architects serving clients who are adamant that building their home is the best way to go.  Today we share with you five (5) common rationales from clients choosing to design and build their own home.

 

  1. You get your dream home

The biggest advantage is that you can build your dream home or something very close to it. When you are searching for a home, it is often impossible to find one that has everything you desire, you most likely have to make compromises.  When building your own home, there will be far fewer, if any compromises to be made. You have a lot more control over the design and function of your home.

 

  1. Your home will be brand new

When you work with design and building companies, they will build you a beautiful brand new home. Whereas, when you buy an existing home, you may find that it has not been treated with care by its previous owners or that it has alterations that are not pleasing to you. A new home is a blank canvas with which you can do whatever you want.

 

  1. New homes are more efficient

Any property built these days must adhere to the current efficiency standards. These standards cover elements such as heating, cooling and ventilation, and many others which results in more efficient and stronger homes being built.  Not only does it lead to comfortable living conditions but it can also be an environmentally friendly and cost-effective way to live.

 

  1. Choice of materials

With the increase in availability of different types of building material including environmentally friendly material you get to choose your building materials.  Most new homes are designed to use more environmentally friendly materials and energy efficient systems to create a home that is far more sustainable.

 

  1. Government Fees

The government fees payable by a buyer on a typical property transfer is 7.5% of the sale price or value, whichever is greater.  You can buy land and pay associated fees on it then build, avoiding payment of government fees and often lawyer fees on land plus house price or value.

 

If finding that perfect home has proven to be difficult so far, why not consider having it built?